Probationary Period Mortgages:
When you start working on your first job, its completely natural to think about your future living arrangements and looking for your first property to buy or making changes to your current property; however, the problem comes up with your probation period, which mostly considered 3-6 months of the period in your employment contract. The good news is that many lenders offer mortgages to employees within a few months of starting a new job. As enquiries about a mortgage on probation period continue to increase, “NeedingAdvice.co.uk Ltd” is keen to provide the best financial advice so that you won’t lose out on buying a property. We have also created a comprehensive guide to help possible individuals to get the answers to every key question on the topic below:
Can I get a mortgage in the probationary period?
The answer is yes, you can. Although, some of the mainstream lenders will you away, and some will take a flexible approach for giving loans to recently employed individuals. Mortgage lenders will look for your contract type, confirm the length of your contract along with the job offer as a part of evaluating the loan application. The condition also applies when you have just started a new job and will be a key part of your entire mortgage application. Some additional details about “mortgage with new job” are discussed in our blog. It is also worth noting that underwriters will choose a conservative approach while determining the income of the probationary employee; for example, the overtime income, bonus or commission income is not considered unless and until there is two years of income history available in the documentation.
How to get a Mortgage in probationary period?
The easiest way is to contact an independent mortgage provider and share all the required details. The required documents include at least 12 months of your track record working in the same industry, which will help the lenders build trust in your profile. In addition, it will show that you have enough experience with the industry and will have future income stability.
What are the other things to consider?
The common fear of every mortgage lender is the candidate’s failure to complete the employment probation period. As the newly hired won’t provide satisfactory evidence of stable income level, most lenders ask for payslips for basic salary as proof of income stability over a period of time. However, it can be difficult to figure out what options are available to the candidate without the right support as employment requirements change frequently.
Do different types of jobs have different conditions to borrowing?
Yes, the loan application made during the employment probation period differs with the type of job. The application process for jobs like teacher and doctors may have a better chance of mortgage approval. Its always better to contact the expert broker who can help you to strengthen your application. You can create an enquiry with NeedingAdvice.co.uk Ltd for the step by step process. The key worker mortgages are available for people working in health, education and public safety roles as mentioned below:
- Ambulance Service
- Fire Brigade
- HM Prisons
- Local Authority Schools
- Police Services
- Public Transport
These loans are rare, and most government schemes are not working or have changed now. However, key worker mortgages are available via limited lenders. So if you are working on probation in the public sector, you could avail yourself of a big cost saving on your lending amount.
How does my probation period length affect my mortgage options?
It is not always the case, but a very short and long probation period may affect the application process.
For example, your loan might be approved, but it may be withheld until your trial period is over. According to the lender’s perspective, this would help you avoid a potentially uncertain outcome of having your probation lifted, but this could be a problem if your probation is longer than you’re willing to wait to purchase a house.
However, not all lenders follow this approach – and with the average employee having a six-month probationary period in a new role, some give loans regardless of the length or stage of your probation at the time of application. As discussed before, lenders’ stance on getting a loan during a probationary period varies, so it will be necessary to seek advice from expert brokers like NeedingAdvice.co.uk Ltd.
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In conclusion, it is possible to get the right type of mortgage for securing property and step onto the property ladder for your future, especially when you can. But it is to be well noted that every lender has different lending criteria that may or may not depend on credit rating, annual income, first deposit, permanent employment contract, employment history, temporary contract job offer letter, credit score, etc.
Don’t let so many buzz words stop you from getting your first property while on a probation period. First-time buyers have to go through a lot of brainstorming in which an expert advisor could help and provide you with the most suitable mortgage advice.
- Can I get a mortgage in my probation period? Yes, you can get a loan in your probation period. Please read the above article or connect to a specialist broker.
- Can I get a mortgage if I’ve just started a new job? Yes, you can, but you need to consult an expert broker
- How long do you have to be in a job to get a mortgage? Some mortgage lender will ask you to complete six months, but some can start your application from the third month of the job.
- Can I get a loan as a probationary teacher? The answer is yes; it is possible to be eligible for key worker mortgages, which often offer better rates for those in certain fields like health, education and teaching.
- Do you need three months payslips to get a mortgage? It depends on your contract term. I will suggest contacting some independent mortgage brokers.